India: BigMint's billet index drops INR 150/t d-o-d - 22 Mar'24

• Market remains dull ahead of Holi holidays
  
  
• Total billet trade volumes drop marginally d-o-d
  
  

BigMint's billet index dropped by INR 150/t to INR 39,650/tonne (t) exw-Raipur on 22 March, 2024.

Market inertia prevails ahead of the Holi festive holidays and financial year-end which have dampened activity, reflecting a subdued sentiment in the steel sector.

Total transactions recorded today were 2,000 t, compared to 2,050 t on 21 March.

In the finished steel segment, rebar prices in Raipur stayed firm and 1,850 t of trade volumes were recorded. Wire rod prices decreased by INR 200/t and 1,100 t of deals were heard. Sponge iron prices fell by INR 50/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,100/t.

Rationale -

This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.

• Transactions (T1) - Two trades at INR 39,600-39,700/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,650/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 39,642/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,646/t, rounded to INR 39,650/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology